China is struggling to offload its overseas businesses

Bloomberg

China Inc is struggling to offload overseas businesses and the accompanying debt in an increasingly volatile market.
In just a few weeks, companies from yacht makers to luxury clothing and pizza outlets — acquired by Chinese firms in recent years — have either scrapped planned initial public offerings or sought alternatives to reduce their debt piles.
Ferretti SpA, the Italian superyacht maker controlled by China’s SHIG–Weichai Group, shelved its planned Milan
listing, citing weak market conditions. Shandong Ruyi Technology Group Co, which spent over $4 billion on purchases including UK trench coat maker Aquascutum, introduced a local state-owned firm as its second-largest shareholder amid rising pressure to repay debt.
Chinese firms started selling off assets two years ago when the government tightened curbs on capital outflows and stepped up scrutiny on foreign acquisitions. Geopolitical factors from the US-China trade war to Brexit and protests in Hong Kong and Chile are hurting sentiment in dealmaking on uncertain outlook.
“It’s a big process of adjustment,” Mark Webster, a managing director at investment banking adviser BDA Partners in Shanghai, said in a phone interview.
“Some Chinese companies made overseas acquisitions at the top of the cycle and ended up overpaying for assets that did not make a lot of strategic sense. They are now finding it challenging to offload those businesses at fair values.”